ReNew Energy Global (NASDAQ:RNW) reported what executives described as its strongest fiscal year to date, citing record profitability, expanded operating capacity, lower leverage and growth in its manufacturing and commercial and industrial businesses.
On the company’s fiscal fourth-quarter and full-year 2026 earnings call, Founder, Chairman and CEO Sumant Sinha said ReNew’s operating portfolio reached approximately 12.8 gigawatts, up 25% year over year after adjusting for asset sales. The company commissioned 2.4 gigawatts during the year, its highest annual total, and its committed portfolio now stands at 20.2 gigawatts, including 1.7 gigawatts of battery energy storage systems. ReNew’s broader pipeline, including projects where it has won auctions but not yet signed power purchase agreements, exceeds 26 gigawatts, Sinha said.
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Sinha framed the company’s performance against a backdrop of rising energy security concerns in India, where the country remains heavily dependent on energy imports. He said geopolitical tensions in the Middle East and rising domestic power demand have reinforced the importance of renewable energy as a domestic source of power.
India installed 51 gigawatts of renewable capacity in fiscal 2026, the highest annual total to date, accounting for 90% of new capacity additions, Sinha said. Solar remained the main growth driver, while increasing power demand during non-solar hours is supporting adoption of battery storage and hybrid projects.
Profitability Rises as Leverage Declines
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ReNew delivered adjusted EBITDA of INR 98.5 billion for fiscal 2026, exceeding the top end of its guidance, according to management. Profit after tax rose to INR 10.4 billion, up 2.3 times from INR 4.6 billion in fiscal 2025. CFO Kailash Vaswani said adjusted EBITDA grew approximately 25% year over year, while cash flow to equity increased 45% to INR 21.6 billion.
Vaswani said the results were driven by portfolio growth, lower leverage and interest expense, manufacturing contributions and disciplined cost management. The company reduced net debt to EBITDA by about 1.1 turns year over year. Sinha said ReNew’s interest expense-to-adjusted EBITDA ratio fell to 61.5% in fiscal 2026 from 66% in fiscal 2025.
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The company also highlighted progress on receivables. Sinha said ReNew received a favorable Supreme Court order related to roughly half of overdue receivables from Andhra Pradesh and has begun receiving initial payments for some past-due receivables. Vaswani said the company expects the development to help bring days sales outstanding below 50 by next year.
For the fiscal fourth quarter, Vaswani said adjusted EBITDA was approximately INR 23.7 billion, compared with INR 22.1 billion in the prior-year period. He said fourth-quarter results included INR 4 billion from the manufacturing business, compared with INR 3.6 billion in the same quarter of fiscal 2025.
Manufacturing Becomes a Larger Contributor
ReNew’s manufacturing business contributed INR 14.8 billion to consolidated adjusted EBITDA in fiscal 2026, or about 15% of total adjusted EBITDA, Sinha said. Vaswani added that the business generated more than INR 19 billion of EBITDA on a standalone basis.
Sinha said the company expects to start production at its 4-gigawatt cell facility toward the end of the current fiscal year. He also pointed to India’s ALMM 2 policy, which mandates domestic sourcing of cells beginning in June 2026, and the proposed ALMM 3 policy, under which ingots and wafers would need to be procured domestically from June 2028.
ReNew has announced a 6.5-gigawatt ingot and wafer facility to further integrate its supply chain. During the webcast Q&A, management said the facility requires about INR 42 billion of capital expenditure, assuming the company does not build a captive power plant. Management said 50% to 60% may be funded through project debt, with the remainder funded through manufacturing cash accruals and an external fundraise. ReNew’s parent company is not expected to deploy additional equity into the manufacturing business for the facility.
In response to an analyst question from Mizuho’s Maheep Mandloi, Sinha said the ingot and wafer plant is expected to be commissioned around June 2028 and will not contribute in fiscal 2027 or fiscal 2028.
C&I Platform and Battery Storage Remain Strategic Priorities
Sinha said ReNew’s commercial and industrial, or C&I, business now totals 2.7 gigawatts, including 2.2 gigawatts commissioned. The business has grown sevenfold over the past five years, and nearly half of its contracted capacity is tied to large technology companies and hyperscalers, he said.
ReNew recently raised $95 million for an 11.3% stake in its C&I platform from a LeapFrog-led consortium. Sinha said the segment is positioned to benefit from data center demand, noting that C&I customers consume about half of India’s electricity and pay some of the highest grid tariffs, while renewable penetration remains low.
Management also said ReNew is increasingly shifting its portfolio toward solar and battery storage, reducing reliance on wind. Vaswani said falling battery storage prices have led the company to favor a solar-plus-BESS configuration, reducing overall capital expenditure by INR 60 billion while lowering EBITDA by only INR 7 billion compared with the prior configuration. He said the mix should improve execution certainty and make cash flows more predictable.
Wind will still remain part of the portfolio, particularly in C&I and other higher-return opportunities, Vaswani said.
Guidance Calls for Higher EBITDA in Fiscal 2027
For fiscal 2027, ReNew expects adjusted EBITDA of INR 103 billion to INR 109 billion, supported by contributions from both the core renewable business and manufacturing. Vaswani said that represents a 17% increase from the guidance range provided last year.
The company expects its manufacturing business to contribute INR 10 billion to INR 12 billion in fiscal 2027. Vaswani said manufacturing margins are expected to moderate somewhat this year, but the long-term EBITDA growth outlook remains intact, with the 4-gigawatt cell expansion expected to contribute meaningfully in fiscal 2028 and the ingot-wafer plant in fiscal 2029.
ReNew also expects INR 1.2 billion from asset recycling, construction of 1.6 gigawatts to 2.4 gigawatts of capacity and cash flow to equity of INR 18 billion to INR 22 billion in fiscal 2027.
On refinancing, Vaswani said ReNew has about $1 billion due for repayment over roughly the next 12 months, with $400 million of commitments already received. He said the company may use a mix of dollar bonds and onshore liquidity, depending on which option provides the lowest cost of capital. ReNew refinanced approximately $2 billion of debt in fiscal 2026, he said.
Grid Curtailment and Policy Issues Discussed
Sinha said grid expansion did not keep pace with renewable installations in fiscal 2026, leading to curtailment for some renewable projects, particularly in Rajasthan. He said the impact moderated in the fiscal fourth quarter but is expected to affect the current fiscal year, especially the first half.
In response to Mandloi’s question on lower solar plant load factors, Sinha said solar performance was affected by some curtailment and slightly lower resource efficiency.
During the Q&A, Bernstein analyst Nikhil Nigania asked about CERC deviation settlement mechanism regulations and a related stay order from the Karnataka High Court. Sinha said current guidelines are unlikely to remain unchanged and that some relaxation is expected. If the current framework were implemented as is, he estimated an impact of about INR 0.5 billion in fiscal 2027.
Sinha also said ReNew is seeing emerging opportunities in green fuels, including a planned green methanol tender by the Government of India and possible renewed activity in fertilizer and refinery-related tenders. He said overseas demand is also picking up, particularly in the Far East, and that green fuels could become a larger medium-term opportunity.
Asked about a potential India listing given valuation differences with Indian peers, Vaswani said management has observed the gap, but ReNew is not currently considering an India listing.
About ReNew Energy Global (NASDAQ:RNW)
ReNew Energy Global PLC is an independent power producer specializing in the development, construction, ownership and operation of utility-scale renewable energy projects. Headquartered in Gurugram, India, the company focuses on onshore wind farms, solar photovoltaic plants and hybrid energy systems, often paired with battery energy storage to enhance grid stability and dispatch flexibility. ReNew Energy Global markets electricity under long-term power purchase agreements, serving utilities, distribution companies and corporate offtakers.
The company’s core business activities encompass site identification, project design, procurement, construction management and ongoing asset management.
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The article “ReNew Energy Global Q4 Earnings Call Highlights” was originally published by MarketBeat.
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